The city of Boulder is considering what its energy future will look like. The goal it to acquire "clean, local and reliable" energy in the future, and one voter-approved option is to start a municipal utility. For more information on the history of this decision, click here.

The U.S. Environmental Protection Agency and the U.S. Department of Justice announced today that Cemex Inc. has agreed to operate advanced pollution controls on its Lyons kiln and pay a $1 million civil penalty to resolve alleged violations of the Clean Air Act.

"Today's settlement will reduce harmful emissions of nitrogen oxides, which can have serious impacts on respiratory health for communities along Colorado's Front Range," Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance, said in a press release. "Cutting these emissions will also help improve environmental quality and visibility in places like Rocky Mountain National Park."

The Cemex cement plant near Lyons is seen Friday, April 19, 2013.
(Matthew Jonas/Times-Call)

The Department of Justice filed a complaint against Cemex alleging that between 1997 and 2000, the company unlawfully made modifications at its Portland cement plant in Lyons that resulted in significant net increases of nitrogen oxide and particulate matter emissions. The complaint further alleges that these increased emissions violated the Clean Air Act's Prevention of Significant Deterioration and Non-Attainment New Source Review requirements, which state that companies must obtain the necessary permits prior to making modifications at a facility and install and operate required pollution control equipment if modifications will result in increases of certain pollutants.

Cemex USA spokeswoman Sara Engdahl said in an emailed statement that "the alleged violations ... occurred prior to Cemex's acqusition of the facility" in 2000. She said, "Cemex believes that the prior copany that owned the Lyons facility during that time was never in violation of the Clean Air Act as alleged by the EPA."

As part of the settlement, according to the EPA's news release, Cemex will install "Selective Non-Catalytic Reduction" technology at its Lyons facility. This technology is expected to reduce Cemex's nitrogen oxide emissions by approximately 870 to 1,200 tons per year. The initial capital cost for installing SNCR is approximately $600,000 and the cost of injecting ammonia into the stack emissions stream, a necessary part of the process, is anticipated to be about $1.5 million per year.

Cemex said in the company's statement that "Cemex's discussions with the EPA regarding the alleged violations have been ongoing since 2006. Over the course of these discussions, the EPA amended their compliant to reflect fewer alleged violations.

"Cemex has taken many measures to ensure that the Lyons facility is in compliance with environmental regulations," the company statement said. "Cemex looks forward to closing this matter and moving forward with the successful programs in place at Lyons that focus on sustainability and have resulted in consistent regulatory compliance, voluntary emissions reductions and environmental excellence."

Nitrogen oxide emissions may cause severe respiratory problems and contribute to childhood asthma, the EPA release said. These emissions also contribute to acid rain, smog, and haze which impair visibility in national parks. Cemex's facility, just east of Lyons, south of Colorado Highway 66, is within 20 miles of Rocky Mountain National Park

The EPA press release said emissions may contribute to visibility impairment and to the nitrogen pollution problem that is affecting the park's vegetation, water quality and trout populations. "Air pollution from Portland cement manufacturing facilities can also travel significant distances downwind, crossing state lines and creating region-wide health problems," the release stated.

The settlement must still be approved by a Denver U.S. Distrrict Court judge. The proposed consent decree that details the settlement is subject to a 30-day public comment period.

The Lyons facility was previously owned by Southdown Inc, prior to Cemex's acquisition of that company and its Lyons plant in 2000.

Ballot language:
In November, Boulder voters narrowly approved two ballot issues related to starting a municipal utility: 2B and 2C. You can read the full text of the ballot language on the city's website.

Issue 2B asked voters to increase the existing utility occupation tax by up to $1.9 million a year. The money from the tax, which will be collected from customers by Xcel Energy, will be used by the city to cover the costs of moving forward with forming a municipal utility, such as more studies and legal fees.

Issue 2C asked voters for permission to actually form a municipal utility. The language allows the city to sell the necessary bonds to take over the current system from Xcel, but it states that the city may only move forward with forming a municipal utility if it can start the utility with rates that are the same or cheaper than Xcel's.

Helpful Links:City of Boulder: This is where the city is aggregating all of its documents, meeting information and updates on Boulder s energy future: bouldercolorado.gov/energyfuture

RenewablesYes: This website is run by the group of volunteers that lobbied local voters to pass a utility occupation tax in November to replace the expiring franchise fee from Xcel Energy. Now, the group is advocating for the city to secure a cleaner, more local energy supply. renewablesyes.org

Xcel Energy: Xcel is the largest utility in Colorado, and it currently provides electricity to Boulder. The city s 20-year franchise agreement with Xcel expired at the end of 2010. xcelenergy.com

Boulder Smart Energy Coalition: A citizen group that supports the city's general energy goals but has concerns about the risks involved with starting a municipal utility. bouldersec.com

SmartGridCity: Xcel Energy has installed a smart grid in Boulder. This web site provides more information on that initiative. smartgridcity.xcelenergy.com

Colorado Association of Municipal Utilities: This Colorado Springs-based group represents the state s 29 municipal utilities, which include utilities based in Lyons and Longmont. coloradopublicpower.org